TRID Rules Take Effect 10-3-2015 – Chuck Barberini Real Estate

https://www.barberinico.com/trid-rules-take-effect/

Chuck Barberini Realtor – Contra Costa County Real Estate – Intero Walnut Creek

TRID 6-page-001

TRID takes effect today I have attended a couple of talks discussing how the new rules will impact the Real Estate industry. Some of the items of importance, as I see them, are that TRID requires the lenders to draw up a very accurate Loan Estimate, which is replacing the Good Faith Estimate, at the beginning of the disclosure process, similar to the current process. Loan docs cannot be signed within a 7 day period of the Loan Estimate receipt date. It also requires that the Closing Disclosure, a modified document taking the place of the HUD, requires 3 days of seasoning before the buyers are able to sign their loan docs. The Closing Disclosure must be within 10% of the Loan Estimate or the Loan Estimate has to be re-issued with another 7 day waiting period. This is the part that has everyone worried about the length of escrows. Another key component is that there are no fee adjustments permitted once the Closing Disclosure is sent. The burden will be on the borrower to get the lender all of their information early and completely, then for the lender to thoroughly create the Loan Estimate, including all potential fees. I have heard that some of the banks anticipate that TRID will add 14 days to the closing of an escrow, I believe that will be the exception rather than the rule. As one of the speakers stated he expects a learning curve as everyone implements the new procedures and gets comfortable with the process and there may be some hiccups along the way, but it should be business as usual within 6 months, we shall see.

One of the scary propositions is that the government oversight has built in severe penalties for lenders who don’t comply with the process, which could be why the banks are being overly cautious with their estimated closing times. I have attached a short article from the National Association of Realtors which states that early enforcement will be corrective and not punitive, which should help alleviate some of the stress and allow the lenders to perform and adjust as they go.

As a borrower, I suggest that you bring up your questions and concerns with your lender at the beginning of the process, because once the ball starts rolling it needs to roll on a straight line to the finish. One of the most important things to remember in this competitive Bay Area market is that all buyers are in the same boat, dealing with lenders and Escrow Officers who are now learning the process. Ask the questions and find out how comfortable and forthcoming your lender is with TRID.

 

OCTOBER 2, 2015

BY WILLIAM GILMARTINMARCIA SALKIN

The new TILA-RESPA Integrated Disclosure (TRID) rules for mortgage closings took effect for new loan applications on October 3.  The Director of the Consumer Financial Protection Bureau, on behalf of the six federal financial regulatory agencies, provided written assurances that the early enforcement of the new rules will take into account the good faith efforts of supervised entities.  The letter coincides with Director Cordray’s testimony on September 29 before the House Financial Services Committee that early enforcement efforts would be corrective and not punitive for a period of several months.

This letter is the result of NAR’s joining with numerous industry partners to request this written assurance so that lending institutions can proceed with closings under the new rule in a timely manner.

www.Realtor.orgTRID 1-page-001

Rates are down click on the link below: 

Mortgage Rates and Market Data

Chuck Barberini Real Estate – It’s Not Easier to Get a Mortgage

Chuck Barberini Realtor – Contra Costa County Real Estate – Intero Walnut Creek – https://www.barberinico.com/archives/154

Chuck Barberini Real Estate – It’s Not Easier to Get a Mortgage

DAILY REAL ESTATE NEWS | MONDAY, AUGUST 10, 2015

Home sales are improving, so does that mean it’s easier to get credit access for a mortgage? Not necessarily, writes Jonathan Smoke, realtor.com®’s chief economist.

Read more: Getting a Mortgage is Easy, Consumers Say

Last fall, mortgage giant backers Fannie Mae and Freddie Mac urged lenders to ease their requirements and also introduced new 3 percent down payment programs for qualified buyers. The Federal Housing Administration also has lowered its insurance premiums.

The Mortgage Bankers Association’s Credit Availability Index was at 122 in June, a 5 percent increase year-over-year in the expansion of credit. However, the index peaked at 869 in June 2004 – indicating that June’s reading is still far from that peak or even a normal reading.

Smoke says that the average FICO score on a closed purchase mortgage in June was 727. Average FICO scores for the past 24 months have hovered between 724 and 742. That represents above-median credit quality households, Smoke says. The average denied FICO score was 672 in June, down from 686 a year ago.

What that means, Smoke notes, is that “more lower credit-quality households are applying but not getting approved. Yet at the same time, the percentage of purchase applications making it to closing has risen from 64 percent last June to 69 percent this June. Times are still tough for those with tarnished credit.”

On the other hand, wealthier households seeking a jumbo mortgage may be having an easier time. Lenders are showing signs of loosening up on jumbo mortgage requirements.

A more widespread change may be on the horizon for the market. A July Senior Loan Officer survey report from the Federal Reserve did show that over the past three months banks have been easing lending standards on several categories of mortgage loans. Smoke notes that those changes may start appearing in the closing averages in the coming months.

Still, “today’s limited credit availability is at least partly to blame for the tight supply that’s leading to higher prices and higher rents,” Smoke writes. “Builders are not convinced that there’s enough depth of demand to absorb higher levels of new construction, so they are holding back and focusing on their profitable growth instead. Meanwhile, a substantial percentage of today’s home owners with mortgages underwritten years ago fear not being able to qualify for a new mortgage today, so they stay on the sidelines and keep their homes off the market.”

Source: “Is It Really Easier to Get a Mortgage These Days? Well …” realtor.com® (Aug. 6, 2015)

Rates improved today upon the release of weaker than expected economic news. 

Mortgage Rates and Market Data

 

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Chuck Barberini Real Estate – Builders Feel Like It’s the Housing Boom Days

Chuck Barberini Realtor – Contra Costa County Real Estate – Intero Walnut Creek
DAILY REAL ESTATE NEWS | TUESDAY, AUGUST 18, 2015

Builders are feeling more confident as sentiment over the new single-family home market rose to its highest level since November 2005, according to the latest National Association of HomeBuilders/Wells Fargo Housing Market Index. Read more: New-Home Market Expected to Strengthen
The index gauges builder perceptions of current single-family home sales, sales expectations for the next six months, and buyer traffic. The index rose one point in August to 61. Any reading above 50 indicates that more builders view conditions as “good” than “poor.” Broken out, the index measuring buyer traffic rose two points in August to 45; current sales conditions rose one point to 66; and the index measuring sales expectations in the next six months held steady at 70.

builder
“Today’s report is consistent with our forecast for a gradual strengthening of the single-family housing sector in 2015,” says David Crowe, NAHB chief economist. “Job and economic gains should keep the market moving forward at a modest pace throughout the rest of the year.”
Regionally, the index rose by the most in the West and Midwest in August, both seeing a three-point increase to 63 and 58, respectively. The South also saw a two-point increase to 63 while the Northeast held steady at 46.
“The fact the builder confidence has been in the low 60s for three straight months shows that single-family housing is making slow but steady progress,” says NAHB Chairman Tom Woods. “However, we continue to hear that builders face difficulties accessing land and labor.”
Source: National Association of Home Builders

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Chuck Barberini Real Estate – How High Will Mortgage Rates Actually Climb?

Chuck Barberini Realtor – Contra Costa County Real Estate – Intero Walnut Creek

DAILY REAL ESTATE NEWS | MONDAY, AUGUST 17, 2015

The lowest mortgage rates on record have lured buyers during the last few years, but the Federal Reserve has already given plenty of signals that will soon come to an end.

Read moreRising Mortgage Rates May Spark Buying Frenzy

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Mortgage rates are already inching up, ever-so-slightly. From January to June, the 30-year fixed-rate mortgage climbed from 3.7 percent to 4.2 percent. Mortgage rates recently have been hovering around 4 percent.

In this latest era of super-low mortgage rates, what’s normal? A 6 percent interest rate is “normal,” says Jonathan Smoke, realtor.com®’s chief economist. He says mortgage rates likely won’t hit that point in the next two years, however.

“We will likely see less than a 100 basis point increase over the next two years, which would bring us to around 5.5 percent in 2017,” he says.

If Smoke’s prediction holds true, mortgage rates will then remain below normal even in two years. However, that increase in rates would translate into a 12 percent increase in monthly payments over current rates, according to Smoke.

For now, mortgage rates remain low, and in 80 percent of the U.S. markets, it’s more affordable to buy a home than rent, according to realtor.com®.

Source: “Just How High Might Mortgage Rates Go?” realtor.com® (Aug. 14, 2015)

 

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Chuck Barberini Realtor – ‘Prices Are Rising Just Too Fast’

DAILY REAL ESTATE NEWS | TUESDAY, AUGUST 11, 2015

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The tight supply of available homes is prompting more house hunters to bid up home prices, housing analysts say.Read moreHome Prices Reach an All-Time High

“Prices are rising just too fast,” says Lawrence Yun, chief economist with the National Association of REALTORS®. “And certainly far ahead of people’s income.” NAR recently reported that the limited number of homes for sale was pushing the national median sales price above its 2006 peak. In its latest existing-home sales report, NAR noted that the median home price for all housing types reached $236,400 in June – 6.5 percent above year ago levels and surpassing the peak median sales price set in July 2006 at $230,400.

Housing’s inventory problem is occurring across housing types. Condos made up just 5.5 percent of all multifamily building in the first quarter of this year, the lowest on record for the Commerce Department, which has been tracking such information for more than four decades. Single-family construction is also about half of what it should be, according to Bob Denk, senior economist at the National Association of Home Builders.

As for what’s hindering the new-home supply, Denk points to a skilled labor shortage in the building industry as well as a shortage in the number of lots to build on. “We are having these supply chain headwinds,” Denk says. “It’s hard to just double overnight. But the other part of that is we have produced at this level before, so it’s not impossible.”

Source:A Lack of Supply Drives Up Housing Prices,” Market Place (Aug. 10, 2015)

 

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Happy Independence Day 2015 – Chuck Barberini Realtor

4th of July

As we celebrate our countries independence, let’s remember those that have fought and gave their all for us.

Remember our national pride – Remember who we are – Let’s take our country back.

Happy Independence Day 2015 US

Chuck Barberini Realtor – Loan Demand Is on the Upswing for Spring

Chuck Barberini Realtor – Contra Costa County Real Estate – Intero Walnut Creek

In every walk with nature one receives far more than he seeks. John Muir

DAILY REAL ESTATE NEWS | WEDNESDAY, APRIL 01, 2015

Mortgage applications for home purchases and refinancings continue to rebound, with volume rising 4.6 percent on a seasonally adjusted basis last week compared to the week prior, the Mortgage Bankers Association reports in its latest index reading for the week ending March 27.

“This week’s mortgage application survey falls right into line with recent indications that home sales – new, existing, and pending – are on the rise, as is consumer sentiment,” says Lynn Fisher, the MBA’s vice president of research and economics.

Broken out, loan applications for home purchases, viewed as a gauge of future home sales, increased 6 percent week over week. Purchase applications are 8 percent higher than year-ago levels. Refinancing applications increased 4 percent during the week. Refinancing applications are 44 percent higher than they were a year ago, according to the MBA.

Federal Housing Administration loans, a big draw to first-time buyers, and Veterans Administration loans continue to post a strong performance with volume of these government-insured loans growing by 19 percent compared to last year.

The average 30-year fixed-rate mortgage fell to 3.89 percent last week, from 3.90 percent the week prior, the MBA reports.

Source: “Mortgage Applications Surge on Spring Demand,” 

While appreciate what the article has to say regarding loan apps and I think that it bods well for market strength in the upcoming months, it seems to me that it is only one side of the equation, at least here in the Bay Area. The rates are low and holding, which by itself has increased the activity in the market, the problem that I am finding as a man out on the streets is that there is a dramatic lack of inventory and the available homes are going up in price at a rapid rate. This is a twofold problem as it is knocking investors out of the market, because they are not able realize a return on their investment and the young buyers are getting priced out of the market. So who does that leave in the market, the more traditional home buyers that have a sudden increase in home equity which they can leverage into buying a larger family home and investors that are able to buy and hold to take advantage of the very restricted rental market.

It seems like the strategy for both young buyers and investors alike is patience, but be prepared to pull the trigger when the right opportunity comes along.

 

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